Refinancing your home - 3.875% for 15 year loan!

My husband recently discovered that 15 year interest rates are at an all time low at 3.875%.  My husband, Mr. Numbers Guy, has already calculated that if we refinance from our current 30 year loan (at 4.75%) to the current 15 year rate, we will actually only need to pay $100 extra a month on our mortgage.  (This $100, I can happily say, we can do since we are now saving so much money on groceries! Yeah us!) What an awesome opportunity!


AND this also means that 65% of our payment will go to the principal now as opposed to the current 40% !  I am so excited to think that we could have our house paid for in 15 years.  We don't plan to stay her for more than 5 years, but still to walk away with that much more when we sell--how exciting!
 
If you are currently in a 30 year loan you may want to look at your options of refinancing.  My husband found that Summit Credit Union has the cheapest closing costs of $1100 and it could be less if you get the appraisal waved--they also are currently at 3.875%.

If you are interested in finding out what sort of change in payments you would have if you moved from your current loan to the 15 year loan, call Summit, or your bank.  They will be happy to crunch the numbers for you.  (After all they sell these loans for a living.) 

Along with Rob's number crunches, we also always look at how quickly would we make back the closing costs (this is important to us, since this is extra money coming out of our pockets.)  This may be something you would want to look at too.  We found out that within a year we would more than make up that $1100 closing cost!  This definitely makes it worth while.

You probably don't want to wait too long to do this, as interest rates may go back up soon (then again they could keep going down...).  

So what options did you find in refinancing your home?  Any advice?